State jobless rate in May rises to 7.8 percent

Published 9:50 pm, Thursday, June 14, 2012

Connecticut's unemployment rate inched up in May, state officials said Thursday while offering a glimmer of optimism by saying the labor force also increased for the first time this year.

The jobless rate increased to 7.8 percent, up 0.1 percent from April as the number of unemployed workers rose by 3,112 to 150,300. The state also added 1,400 jobs.

The report comes as nationwide claims for jobless benefits unexpectedly climbed by 6,000 to 386,000 in the week ended June 9, which is more than first estimated, U.S. Labor Department figures showed Thursday.

Economists projected claims would fall to 375,000, according to the median estimate in a Bloomberg News survey.

Andy Condon, director of the state Labor Department's office of research, said that if growth in the labor force continues it will be a sign that more people are actively searching for work. Such a development is significant because the labor force had declined for four consecutive months, he said.

"People who are frustrated and drop out of the labor market see opportunity," he said.

Gov. Dannel P. Malloy said increased activity by job-seekers may be causing the slight increase in the unemployment rate as the labor force -- including those without work -- grows.

"Given the fact that more people are trying to enter the work force because they're more optimistic they can actually find a job, the change in the unemployment rate is not a surprise," he said in a statement.

Nationally, the unemployment rate also ticked up by 0.1 percent in May, to 8.2 percent. U.S. employers created only 69,000 jobs in May, the fewest in a year.

"Jobless claims are pretty consistent with mediocre job growth," said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, before the national report. "It feels to me like we're entering a period where businesses are getting cautious again. This recovery has unfortunately been a little bit on again, off again."

Over the year, Connecticut's labor market grew by 6,200 jobs, or 0.4 percent. The state revised lower the April estimate of a loss of 4,100 jobs to a loss of 4,700.

The number of jobs rose in six of Connecticut's 10 industry sectors, fell in three and was unchanged in one. Education, health care and government were among the sectors where jobs rose. Declines were posted in professional and business services, utilities and transportation.

The mild winter scrambled labor force calculations that Condon said may now be eased with the approach of summer. Economists adjust labor force statistics to account for expected seasonal developments such as increased construction and tourism in warmer months.

"A resumption of more typical seasonal patterns now will hopefully give us a clearer picture going forward on job growth and unemployment in the state," Condon said.